Neighborhood Comparison: Price vs. Return in Montevideo — July 2026
INGAR · · Analysis
Can you buy cheap and still get a good return in Montevideo?
In July, 20 of the 49 neighbourhoods combine a price below the city median (USD 2,486/m²) with a yield above the median (6.0%). It is the largest group alongside its opposite, and it shows that Montevideo's market is strongly polarised: buying cheap and yielding well is the norm, not the exception.
The cross-plot is built on two axes. The price axis is the neighbourhood's median USD per square metre; the return axis is the gross yield. Cutting both at the city median leaves four quadrants, and the way neighbourhoods distribute across them says more about the market than any average.
July's split: 20 cheap and high-yielding neighbourhoods, 20 expensive and low-yielding, 5 expensive and high-yielding, and just 4 cheap and low-yielding. Four out of five neighbourhoods sit on the diagonal running from cheap-and-high-yield to expensive-and-low-yield, which is the classic inverse relationship between price and rent.
Which neighbourhoods combine low prices with high yields?
The first in the group is Cerro, at USD 967/m² and an 11.6% gross yield, followed by Belvedere (USD 1,449/m², 11.3%) and Aires Puros (USD 1,308/m², 11.0%). There are 20 in total, almost all in the north and west of the city.
| Neighborhood | USD/m² | Gross yield | Median rent | Years of rent | Supply |
|---|---|---|---|---|---|
| Cerro | USD 967/m² | 11.6% | USD 449 | 12.6 | Low |
| Belvedere | USD 1,449/m² | 11.3% | USD 530 | 13.0 | Low |
| Aires Puros | USD 1,308/m² | 11.0% | USD 544 | 12.2 | Low |
| Colón | USD 998/m² | 10.9% | USD 438 | 9.5 | Low |
| Cerrito | USD 1,171/m² | 10.3% | USD 479 | 12.2 | Low |
| Maroñas | USD 1,259/m² | 9.3% | USD 429 | 13.2 | Low |
| Atahualpa | USD 1,920/m² | 9.2% | USD 616 | 17.6 | Medium |
| Malvín Norte | USD 1,177/m² | 8.9% | USD 516 | 12.1 | Medium |
| Paso Molino | USD 1,667/m² | 8.0% | USD 581 | 16.9 | Low |
| La Teja | USD 1,222/m² | 7.7% | USD 469 | 10.1 | Low |
| Reducto | USD 1,865/m² | 7.3% | USD 652 | 12.7 | Medium |
| Ciudad Vieja | USD 2,152/m² | 6.9% | USD 653 | 16.5 | Medium |
| Unión | USD 1,956/m² | 6.9% | USD 588 | 15.6 | Medium |
| La Comercial | USD 2,267/m² | 6.7% | USD 650 | 15.1 | Medium |
| Villa Española | USD 1,437/m² | 6.6% | USD 516 | 14.4 | Medium |
| Goes | USD 2,115/m² | 6.5% | USD 596 | 13.9 | Low |
| Sayago | USD 1,369/m² | 6.5% | USD 460 | 13.9 | Low |
| Arroyo Seco | USD 2,048/m² | 6.5% | USD 574 | 16.9 | Low |
| Brazo Oriental | USD 2,095/m² | 6.4% | USD 656 | 14.6 | Medium |
| Villa Muñoz | USD 1,922/m² | 6.3% | USD 763 | 12.6 | Low |
This quadrant offers the most rent per dollar invested, and also demands the most work: these are areas where letting management weighs more heavily, vacancy is less predictable and resale depends on finding a buyer who is often another investor. The high yield is the compensation for that, not a discount the market overlooked.
Which neighbourhoods are expensive and low-yielding?
There are 20, and they include almost the entire premium coastal strip: Golf (USD 4,070/m², 5.7%), Puerto Buceo (USD 3,932/m², 5.5%), Villa Biarritz (USD 3,895/m², 4.9%), Punta Carretas (USD 3,802/m², 5.4%) and Pocitos (USD 3,548/m², 5.1%).
| Neighborhood | USD/m² | Gross yield | Median rent | Years of rent | Supply |
|---|---|---|---|---|---|
| Parque Batlle | USD 2,993/m² | 5.9% | USD 742 | 18.5 | High |
| Carrasco | USD 3,794/m² | 5.9% | USD 1,952 | 17.9 | High |
| Cordón | USD 2,855/m² | 5.9% | USD 712 | 16.7 | High |
| Centro | USD 2,734/m² | 5.8% | USD 677 | 19.1 | High |
| Prado | USD 2,756/m² | 5.7% | USD 663 | 20.0 | High |
| Golf | USD 4,070/m² | 5.7% | USD 2,894 | 19.3 | Medium |
| Aguada | USD 2,536/m² | 5.7% | USD 648 | 19.3 | High |
| Carrasco Norte | USD 3,819/m² | 5.7% | USD 2,244 | 14.3 | Medium |
| Buceo | USD 3,172/m² | 5.6% | USD 761 | 18.6 | High |
| Puerto Buceo | USD 3,932/m² | 5.5% | USD 1,626 | 17.9 | Medium |
| Bella Vista | USD 2,486/m² | 5.5% | USD 649 | 19.3 | Medium |
| Punta Carretas | USD 3,802/m² | 5.4% | USD 1,117 | 19.9 | High |
| Malvín | USD 3,369/m² | 5.3% | USD 840 | 19.9 | High |
| Palermo | USD 3,155/m² | 5.3% | USD 734 | 17.4 | High |
| Capurro | USD 2,770/m² | 5.2% | USD 548 | 26.1 | Medium |
| Pocitos Nuevo | USD 3,669/m² | 5.1% | USD 813 | 19.3 | High |
| Pocitos | USD 3,548/m² | 5.1% | USD 883 | 22.7 | High |
| Parque Rodó | USD 3,715/m² | 4.9% | USD 744 | 21.9 | High |
| Villa Biarritz | USD 3,895/m² | 4.9% | USD 1,154 | 31.1 | Medium |
| Larrañaga | USD 2,870/m² | 4.4% | USD 853 | 13.9 | Low |
Being in this quadrant does not make them bad investments: low returns coexist with the most liquid resale market in the city and the most stable tenant demand. This is the quadrant for those who prioritise preserving capital and being able to exit when they choose, and who accept collecting less rent in exchange.
Are there neighbourhoods combining high prices with good yields?
Yes, but only 5: Villa Dolores (USD 3,130/m², 7.9%), Tres Cruces (USD 2,778/m², 6.6%), Punta Gorda (USD 3,077/m², 6.4%), La Blanqueada (USD 2,932/m², 6.1%) and Barrio Sur (USD 3,020/m², 6.0%).
| Neighborhood | USD/m² | Gross yield | Median rent | Years of rent | Supply |
|---|---|---|---|---|---|
| Villa Dolores | USD 3,130/m² | 7.9% | USD 585 | 21.4 | Low |
| Tres Cruces | USD 2,778/m² | 6.6% | USD 714 | 17.5 | High |
| Punta Gorda | USD 3,077/m² | 6.4% | USD 1,776 | 10.6 | Medium |
| La Blanqueada | USD 2,932/m² | 6.1% | USD 714 | 16.5 | High |
| Barrio Sur | USD 3,020/m² | 6.0% | USD 747 | 17.3 | High |
It is the most interesting quadrant and the smallest, and it is worth looking closely before getting excited. Villa Dolores and Punta Gorda combine high prices with high rents because the supply reaching the market consists of large units: in Punta Gorda the median rent is USD 1,776 on 76 square metres. Tres Cruces and La Blanqueada are a different case: well-connected central areas where rental demand is sustained by students and workers, with sale prices that have not yet caught up.
What about the low-price, low-yield quadrant?
It holds only 4 neighbourhoods: Jacinto Vera (USD 2,365/m², 5.8%), Mercado Modelo (USD 1,976/m², 5.6%), Ituzaingó (USD 1,141/m², 5.6%) and Capurro - Bella Vista (USD 2,476/m², 5.3%).
| Neighborhood | USD/m² | Gross yield | Median rent | Years of rent | Supply |
|---|---|---|---|---|---|
| Jacinto Vera | USD 2,365/m² | 5.8% | USD 668 | 17.3 | Medium |
| Mercado Modelo | USD 1,976/m² | 5.6% | USD 586 | 15.4 | Low |
| Ituzaingó | USD 1,141/m² | 5.6% | USD 532 | 11.7 | Low |
| Capurro - Bella Vista | USD 2,476/m² | 5.3% | USD 616 | 19.2 | Low |
It is the hardest quadrant to justify in purely financial terms, which is why it is the smallest: if a neighbourhood is cheap but yields little, either rents are depressed for some local reason, or the price already reflects an expectation of improvement that rents have yet to show. Each case is worth checking against its monthly series before drawing conclusions from a single month.
Conclusion
July's map confirms that in Montevideo price and yield move in opposite directions almost systematically, with only 5 neighbourhoods escaping the rule on the favourable side. The practical consequence is that there is no optimal neighbourhood in the abstract: there is the quadrant that matches your goal. Decide first whether you are after income, liquidity or capital preservation, and the cross-plot tells you where to look.
Read on: best neighbourhoods to invest in and price rankings.
Frequently asked questions
How often is this data updated?
It is recalculated once a month, with the previous month's close, and published alongside the INGAR Index.
Where do these prices come from?
From our own survey of publicly listed supply in Montevideo: these are asking prices, not closing prices. In Uruguay deals usually close below the listed value.
Want to decide with data instead of gut feel? See how to invest in Uruguay, get an online property appraisal or message us on WhatsApp.
This data is part of the INGAR Index, the monthly index of Montevideo's real estate market, with a data sheet per neighbourhood and a public methodology.
Updated with the 2026-07 close. Source: INGAR Index, the monthly index of Montevideo's real estate market.
Data from the INGAR Index — 2026-07.